Can I submit Form 4640 and receive the PRE under a conditional rescission for the 2008 tax year?

The owner may receive a PRE for the 2008 tax year if Form 4640 is submitted by May 1, 2008, and the property is not occupied, is for sale, is not leased, and is not used for any business or commercial purpose. (Also see question 2, above.) If the assessor determines the property qualifies for a PRE under a conditional rescission, the assessor would put the PRE back on the tax roll for the 2008 tax year the same as if an affidavit is filed for a new PRE.

To apply for a conditional rescission, the owner must submit a Conditional Rescission of Principal Residence Exemption (PRE) (Form 4640) to the assessor for the city or township in which the property is located on or before May 1 of the first year of the claim. Form 4640 can be found at the Michigan Taxes resource, or obtained from your local assessor. For example, to qualify for a PRE in 2009 under a conditional rescission, the form must be submitted on or before May 1, 2009.

An owner may receive the PRE on the previous principal residence for up to 3 years if the property is not occupied, is for sale, is not leased, and is not used for any business or commercial purpose. The owner must annually submit Form 4640 on or before December 31 to verify to the assessor that the property for which the PRE is retained is not occupied, is for sale, is not leased, and is not used for any business or commercial purpose. For example, if an owner received a PRE in 2008 by submitting Form 4640, he or she would have to submit another Form 4640 by December 31, 2008, to qualify for a PRE in 2009.

The owner may receive a PRE for the 2008 tax year if Form 4640 is submitted by May 1, 2008, and the property is not occupied, is for sale, is not leased, and is not used for any business or commercial purpose. (Also see question 2, above.) If the assessor determines the property qualifies for a PRE under a conditional rescission, the assessor would put the PRE back on the tax roll for the 2008 tax year the same as if an affidavit is filed for a new PRE.

The owner may receive a PRE for the 2009 tax year if the Form 4640 is submitted by May 1, 2009, and the conditional rescission requirements are met. If the assessor determines the property qualifies for a PRE under a conditional rescission, the assessor would put the PRE back on the tax roll for the 2009 tax year the same as if an affidavit is filed for a new PRE.

The 60% that qualified for a PRE: Must not be occupied must be for sale, must not be leased, and must not be used for business or commercial purposes. The property would qualify only for the 60%. Public Act 96 of 2008 states that the “owner may retain an exemption for not more than 3 tax years on property previously exempt as his or her principal residence...” (emphasis added). Therefore, a taxpayer would be able to retain the 60% if all other requirements are met. In addition, if a taxpayer is receiving 100% PRE and then rents out 60%, he or she would not qualify for a conditional rescission since he or she is not retaining the 100% exemption previously exempt as his or her principal residence.

The Board of Review has no authority with regard to a conditional rescission and cannot institute a conditional rescission on behalf of an owner if a deadline is missed or for previous tax years. Specific deadlines were included in the statutory language which did not address missed deadlines in Section 19 of MCL 211.7cc. Section 19 specifically states, “An owner who owned and occupied a principal residence on May 1 for which the exemption was not on the tax roll may file an appeal...” The inherent nature of a conditional rescission does not meet the requirements of Section 19 since the property is not occupied by the owner.

Only the owner who previously occupied the property as his or her principal residence qualifies for the conditional rescission. Companies such as a bank do no qualify for a PRE regardless of the situation.

No. The property must be for sale. It may also be available for lease, but once the property is leased, it does not qualify. If a property is receiving a PRE under a conditional rescission, the local tax collecting unit shall deny the conditional rescission effective on December 31 of the year immediately preceding the year in which the property is leased. For example, if a person is receiving a PRE in 2008 under a conditional rescission and then leases the property in September 2008, the conditional rescission shall be denied effective December 31, 2007, resulting in the PRE being removed for the 2008 tax year.

No. In order to qualify, the owner of the property must be eligible for, and claim, an exemption for his or her current principal residence and have occupied the previously exempted property as his or her principal residence. A deceased person cannot be eligible for and claim an exemption on a current principal residence. In addition, if the beneficiaries did not occupy the previously exempted property as their principal residence, they would not qualify for a PRE under a conditional rescission.

Yes. As the statute states, the “...owner may retain an exemption...on property previously exempt as his or her principal residence...” (emphasis added). However, the contiguous parcel must not be occupied, must be for sale, must not be leased, and must not be used for any business or commercial purpose.

Form 4640 must be submitted to the Michigan Department of Treasury on a quarterly basis, or the same time as when other PRE related forms are sent in. It is recommended that the assessor keep a copy of each Form 4640 for comparison during the annual renewal of the conditional rescission.

The owner(s) is certifying the information on the form upon signing the form. However, an assessor has the responsibility to do due diligence to verify the conditional rescission requirements are met as when any other PRE related form is submitted

A property owner who had the PRE on the prior principal residence denied or removed by an Assessor, County Treasurer, the Department of Treasury, Board of Review, or Michigan Tax Tribunal (MTT), is not eligible for a conditional rescission and the Board of Review does not have authority to hear an appeal. However, a property owner who voluntarily rescinded the exemption of the prior principal residence within 90 days of changing residences, as required by statute, may be eligible for a conditional rescission.